Using these tips can protect you when it comes to dealing with your staff or your finances, but there is always more to learn.
Running your own company is filled with myriad challenges. From managing your staff to consulting with your marketing team, there’s a lot going on. Meanwhile, there are also laws regulating your business, some of which may surprise you. You can’t afford those surprises, but these tips will help you to cover your bases, legally speaking.
One of the most prevalent types of controversies in the business world is that of workers’ rights. Throughout history, workers have been treated as expendable pawns and, while things are much, much better now, there are still some holdovers from previous eras of commerce. This can make it much more difficult to comply with the laws protecting workers, because even your style of management might have been informed largely by tactics that are no longer deemed acceptable.
One thing you’ll need to keep your eye on in this area is overtime laws. Try searching something along the lines “California overtime laws” in order to get a feel for the laws in your area, because they can differ from place to place, but the gist of it is that overtime work is typically paid at a higher rate. When employees aren’t getting what they’re owed, or when they think they aren’t, you’ll find yourself in hot water, so you need to be on the right side of the law, first and foremost.
Another common issue in this area is workers’ compensation. When an employee is injured, an assessment must be made as to who is at fault. If the employee is deemed responsible, then they will be solely responsible for their medical bills. On the other hand, if the company is found to have been negligent in such a way as to allow an accident to occur, then they will be on the hook for worker’s compensation. Again, the ruling matters just a little bit less than the truth, at least initially, but following the letter of the law in terms of your safety regulations will protect you from legal trouble surrounding this issue.
Business Finance Law
Another crucial area of law in which you must carefully tread is that of business finance. The entire premise of doing business is to make as much money as possible, but doing so without consideration for the regulations surrounding business finance law will invariably land you in trouble.
The first cause for concern revolves around earnings reports. A business is required by law to accurately disclose its earnings on a quarterly basis, and failing to do so is not an option. More importantly, there is margin for error, and that error can and will be misconstrued as fraud, leading to a potential IRS audit. If you’ve done nothing wrong, then an audit won’t be an issue for you, but there is nonetheless a cost to your time and your business’s credibility in these cases.
Similarly, filing your company’s income taxes annually is crucial, and the margin for error is even greater. This is by far the most common problem regarding business finance law, because of that increased potential for mistakes. However, hiring an accountant can help immensely. It is advisable to hire an accountant for two primary reasons. An accountant will not only help to reduce the potential for error by bringing the correct skillset to the table, but they will also be more informed and up-to-date regarding the legal matters that can plague businesses. With cleaner recordkeeping comes smoother operations in general, in addition to protection from possible transgressions regarding your finances.
Being the head of a company primes you to face many obstacles, from running your business to the best of your ability to possibilities for legal trouble. However, knowing the basics of business law can protect you from the vast majority of possible problems. Using these tips can protect you when it comes to dealing with your staff or your finances, but there is always more to learn.